Final answer:
The Reagan administration was responsible for the Iran-Contra Affair, which involved selling arms to Iran to fund the Nicaraguan Contras. Several officials resigned after details of the arms-for-hostages deals were exposed, although President Reagan denied direct knowledge of the transactions.
Step-by-step explanation:
The Reagan administration devised an elaborate plan where the US sold arms to Iran to fund a right-winged rebel movement in Nicaragua. This plan was part of the Iran-Contra Affair, where the administration sold weapons to Iran, despite an arms embargo, in order to secure the release of hostages and fund the Nicaraguan Contras. This action was in direct violation of the Boland Amendment, which prohibited the use of federal funds to support the Contras.
In 1986, the details of these arms-for-hostages deals were revealed to the public, causing several high-level officials from Reagan's administration to resign. President Reagan denied direct knowledge of the arms deals. Despite being embroiled in this scandal, Reagan did not face legal repercussions, as investigators found no clear evidence that he had personally ordered the deals.